KOCHI: Tea exports are set to take a quantum leap despite recession if the optimism exuded by delegates at the just concluded India International Tea Convention is any indication.
“Tea is considered as an important beverage by all sections in Egypt with per capita consumption placed at 800 to 1,000 g. The annual consumption of tea in Egypt is estimated around 75,000 to 78,000 tonnes, with the government importing 20,000 to 25,000 tonnes per annum for public distribution alone,” M. Heiza, who led a 10-member Egyptian delegation, said.
The Union government recently gave the go-ahead for setting up a tea trade centre in Cairo and an agreement between the delegation and Indian representatives was signed during the convention, which also saw the distribution of the Golden Leaf India awards.
Mr. Heiza said that in Egypt, the private sector played a significant role by importing nearly 55,000 tonnes of tea annually and India had become the preferred destination owing to relaxation of rules.
Earlier, India could not market its tea in Egypt because of high tax on tea imports from outside the Common Markets of Eastern and Southern Africa (COMESA), a trade organisation of countries in the region. This gave Kenya dominance, as India and Sri Lanka had to pay 30 per cent tax, while Kenya enjoyed tax-free trade. In 2004, the Egyptian government reduced the tax to five per cent and in 2007, it was again reduced to two per cent, it was pointed out.
Tea exports to Egypt and Russia are likely to make a quantum leap this year. Exports to Egypt are likely to increase by more than 50 per cent to touch 20 million kg, Shawaky Olama, Chief of Imports, El Nasr Export and Import company and member of the Egyptian Board for tea, said in a media interaction with a select group of journalists here on the sidelines of the convention.
He said that during 2008, Egypt imported 12 million kg of tea from India as compared to six million kg the previous year. During the 2006 calendar year, India exported nearly 2.7 million kg of tea to Egypt, up from 0.37 million kg in 2005.
The United States is taking a number of steps to increase tea consumption, Joseph P. Simrany, president, Tea Association of the U.S., said. It has devised a contest for amateurs titled ‘Calm-A-Sutra’ where contestants make videos on the various benefits of drinking tea. The U.S. tea market is estimated to double from $7 billion in 2008 to nearly $15 billion by 2012, he said.
Source : The Hindu